Metal News - Published on Thu, 11 Oct 2018

India's gold imports in September dropped more than 14 percent from a year ago as a rally in local prices due to a depreciating rupee reduced demand in the world's second-biggest consumer of bullion, provisional data from precious metals consultancy GFMS. The drop in demand from Indian importers could weigh on global prices, which have dropped 8.8 percent so far this year. But lower imports could help the country reduce its trade deficit and support the rupee, which hit a record low this week.

The Indian rupee has fallen almost 14 percent in 2018, lifting local gold prices to Rs 31,531 per 10 grams earlier this week, the highest level in nearly five months.

India's gold imports in August nearly doubled from a year ago to 85.7 tonnes to hit their highest level in 15 months as lower prices prompted manufacturers to stock up for a jewellery exhibition.